Mullin’s losing roll of the dice

It’s no surprise
Larry Mullin
has packed his bags and is headed for home back in the US. The
Echo Entertainment Group
chief executive, who stands down from the role in January and departs the company at the end of the same month, presided over what can best be described as the year from hell for the casino owner.

The sexual harassment scandal involving the former managing director of The Star casino, Sid Vaikunta, would have been damaging for any company. The mishandling of the fallout by Mullin, his management team and the board amplified the damage and left the company open to the kind of corporate attack subsequently launched by
James Packer
’s
Crown
Ltd.

Mullin’s biggest error, perhaps, was not taking an active enough role in first coming clean, and then condemning, the actions of his close friend and appointment to the MD role. Bungled media briefings backfired, and as Crown’s ambitions in Sydney gained political traction the position of Mullin as CEO looked increasingly untenable. A $30 million write-off in the company’s fledgling VIP business and fears The Star would no longer meet its strict investment return criteria only compounded the image problem.

When chairman
John O’Neill
and the board moved against Mullin in September, deciding it was time for new leadership to repair the rifts, only the resignation of long-serving director Brett Paton pointed to lingering support for the Echo chief.